Is Mr. Market schizophrenic? He’s acting like it. Just before 1pm on Friday, the All Ordinaries traded at 3,201. The market was bad and getting worse. Then, shares rallied nearly 5.7% for the rest of the day. The All Ords closed up 54 points on the day. But from the intraday low to the close, it was more like 186 points. Now that’s what we call a bounce back! Maybe Mr. Market had a few martinis for lunch and came back in a reckless mood…
November 24th, 2008 | Dan Denning | 2 comments | ContinuedAll Posts Tagged With: "asx"
Macroeconomic Indicators Show That Chinese Growth Has Softened
BHP wrote in it ASX release that, “China has not been immune to the global slowdown. Macroeconomic indicators show that Chinese growth has softened during the quarter, albeit from very high levels. We expect volatility and uncertainty to continue in the short term.” Translation, “Whoa. Would you look at that? Well, still, pretty amazing story in China. We’ll just have to buckle up until this whole global financial collapse is behind us.”
October 22nd, 2008 | Dan Denning | 1 comment | Continued
Australian Resource Shares, What’s Next?
IMF director Dominique Strauss-Kahn tried to kick-start stalled G7 negotiations in Washington this weekend by reminding everyone what was at stake. “Intensifying solvency concerns about a number of the largest U.S.-based and European financial institutions have pushed the global financial system to the brink of systemic meltdown,” he said. It doesn’t get much more direct than that. The truth is, governments are trying to do the impossible. They are trying to make bad loans turn good.
October 12th, 2008 | Dan Denning | 1 comment | Continued
Nationalised Banking System Will Come from Global Market Rout
The situation in the financial markets has not improved over night. In fact, the crisis seems to be accelerating. But toward what? In the share market, we had a look back on the 2003 low on the ASX. On March 12, 2003 the index closed at 2,673. If the rally that began the next day and ended in October of last year was really just a multi-year rally in the midst of a secular bear market, you have to ask whether the 2003 low will be tested.
October 10th, 2008 | Dan Denning | 7 comments | Continued
Short Selling Ban May Kick Off Market Liquidation
The ASX delayed its opening this morning so that ASIC could clarify its new policy on short selling to market participants. That policy changed twice over the weekend. First, ASIC joined the U.K. and the U.S. in banning naked short selling. It didn’t stop there. Whereas the U.S. has banned short selling of any kind on financial stocks to halt the collapse in share prices, ASIC put a blanket ban on shorting of all Aussie shares, full stop. The policy goal is obvious: halt falling share prices by shooting the bears in the head.
September 22nd, 2008 | Dan Denning | 7 comments | Continued
All Ordinaries Reach 52 Week Low
It’s pretty bad out there. Before he left to have his Visa renewed in New Zealand, our technical analyst Gabriel told us to watch 5,050 on the All Ordinaries. We’re watching. The All Ords opened up and promptly fell two percent to 5,105. It’s a new 52-week low. What about that data yesterday on the housing market and retail sales? Retail sales rose by 0.7% in May. Apparently that was stronger than analysts expected. Should it surprise anyone?
July 3rd, 2008 | Dan Denning | 5 comments | Continued
All Ordinaries Down 17%, Worst Showing in 30 Years
The All Ordinaries is set to finish the financial year down around 17%. That would be its worst showing in nearly 30 years. The financial year performance is what matters to super investors. But it doesn’t really tell you the whole story, does it? Since June 30th, 2003, the ASX/200 is up 72%. That includes the 23% fall we’ve had from the early November high of 6,828. It all depends on how you define your terms, doesn’t it? The RBA’s latest chart pack has three interesting charts.
June 30th, 2008 | Dan Denning | 2 comments | Continued
Saudi Arabia Pours Oil Investment into Australia
Saudi Arabia runs its oil operations like a family Italian restaurant. In theory, everyone owns a bit of the business. There aren’t private interests like Santos (ASX:STO) or Woodside (ASX:WPL). Aramco is Arabia’s oil producer. The profits from oil then go to the government. Of course the last link in the chain, where the government transfers money to its people, is usually missing.
May 28th, 2008 | Al Robinson | 1 comment | Continued
The Fourth Biggest Iron Player in Australia
Here’s some foresight. Investors who jumped on the iron ore train are getting their dividends. Yesterday Murchison Metals (ASX:MMX) gave iron cousin Midwest (ASX:MIS) an all-share merger offer worth . The market loved it. Midwest leapt 12.3%. Murchison flew 8.3%. Everybody won, except Sinosteel. The Chinese giant was closing the net around its prey, Midwest. The nerve of another prey to go and outdo it.
May 27th, 2008 | Al Robinson | 0 comments | Continued
The ASX Bubble, Fueled by China
The price action in the Aussie share market is starting to look like a pinball game. BHP Billiton (ASX: BHP), Rio Tinto (ASX: RIO), Woodside (ASX: WPL)… some of Australia’s biggest resource stocks made 52-week highs yesterday. Both BHP and Rio gave investment presentations in London yesterday, highlighting their various degrees of exposure to China’s urbanisation. The current cycle-or super cycle if you prefer-is still a cycle. But just how long might it last and how high might it take Aussie stocks?
May 15th, 2008 | Dan Denning | 0 comments | Continued